Italy: Eni starts Guendalina gas field production

Eni SPA has started gas production from Guendalina gas field in the Adriatic off northeastern Italy.

Guendalina, on the AC 35 AG concession in 42 m of water 47 km offshore, is producing 20 MMcfd from 22 bcf of proved and probable reserves.

Eni is operator with 80% interest, and Mediterranean Oil & Gas PLC has 20%. ENI notified MOG that the anticipated final project cost is likely to be 7% higher than original estimates.

MOG is selling its gas to the Italian utility Elettrogas SPA under a 1-year contract at an average annual gas price of $11.50/Mcf through Oct. 1, 2012. The contract automatically renews unless terminated by either party.